PEABODY, Mass., July 25, 2002 - ScanSoft, Inc. (Nasdaq: SSFT), a leading supplier of imaging, speech and language solutions, today announced that Sony Electronics Inc., will bundle ScanSoft® Dragon NaturallySpeaking® Preferred with two new portable digital voice recorders, the Sony ICD-MS515VTP and ICD-BP150VTP models.

Sony's inclusion of Dragon NaturallySpeaking software with its digital recorders combines the benefits of mobile dictation with the automatic creation of editable transcripts - resulting in significant productivity gains and cost savings for business professionals, doctors and lawyers. The highly compact and mobile Sony digital recorders offer consumers two choices of memory. The ICD-MS515VTP model uses either a USB connection or Memory Stick® removable flash media technology, which can store hours of recorded speech information and offers a simple way to transfer recordings to Microsoft Windows-based personal computers. The ICD-BP150VTP model contains built-in flash memory for up to five and a half hours of recording time and connects easily to a PC using USB protocols.

The automatic creation of editable transcripts from recordings is made possible by Dragon NaturallySpeaking, the worldwide leader in speech recognition for the PC. Using sophisticated and patented recognition technology, Dragon NaturallySpeaking is able to accurately understand and convert more than 250,000 words into editable text.

"Sony's digital voice recorders provide consumers and professionals with a high-quality, flexible tool that frees up valuable time and improves productivity," said Stephen Teplansky, senior marketing manager for voice recorder products at Sony Electronics. "The Dragon NaturallySpeaking software enhances the capabilities of our recorders and complements our product line-up."

Dragon NaturallySpeaking Preferred contains many features that have made it one of the world's most accurate and popular speech recognition products. The product recognizes a vocabulary of more than 250,000 terms, which can be enhanced by the user, and also includes Nothing But Speech®, which automatically filters out the "um's" and "aah's" that naturally occur in speech.

"As business becomes more mobile, and the level of workflow required for professionals on the go increases steadily, the need for mobile solutions is on the rise," said Wayne Crandall, senior vice president for sales and business development for ScanSoft. "The resulting potential for advanced business solutions demonstrates the productivity gains and increased flexibility that speech and language solutions can provide."

Although they vary by edition, some key capabilities of Dragon NaturallySpeaking include:

The industry's highest accuracy rate for desktop automatic speech recognition

Conversion of voice into text at up to 160 words per minute

Hands-free, voice-enabled control of Microsoft® Windows®-based applications

Ability to expand and customize the vocabulary using existing documents and articles

Option to have e-mails and other documents read aloud using built-in RealSpeak™ text-to-speech

Mobile dictation using supported handheld digital recording devices

Ability to save recorded speech along with a document for later proof reading and correction

Pricing and Availability

The Sony digital recorder bundles can be purchased nationally through authorized retailers or by visiting www.sonystyle.com. The suggested retail price is $249.95 for the ICD-BPA150VTP model and $349.95 for the ICD-MS515VTP model.

About ScanSoft, Inc.

ScanSoft, Inc. is a leading supplier of imaging, speech and language solutions that are used to automate a wide range of manual processes-saving time, increasing worker productivity and improving customer service. For additional information on the company, please visit www.ScanSoft.com.

Trademark reference: ScanSoft, NaturallySpeaking, and Nothing But Speech are registered trademarks or trademarks of ScanSoft, Inc. in the United States and other countries. All other company names or product names referenced herein may be the trademarks of their respective owners.

The statements in this press release that relate to future plans, events or performances are forward-looking statements that involve risks and uncertainties, including risks associated with market trends, competitive factors, and other risks identified in the Company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to put undue reliance on these forward-looking statements that speak only as of the date hereof.

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